Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help for the Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the
Need help for theBreak-Even Analysis:You have been asked to calculate how many units need to be sold to break even, based on the costs provided below:
Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Use the information in task #3 except do not consider taxes.)
- The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY.
assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information.
- Cost of goods sold of $35 per unit
- Labor = $400/month
- One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.
- Advertising fees = $3,000
- Bank fees = $200
- Phone/internet = $150 per month
- Shipping = $3 per unit
- Utilities = $100 per month
- Office Supplies = $900
- Conference Exhibitor Fee = $3000
- Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started